34. What does renouncing a player mean?
As detailed in question number 31, free agents continue to be included in team salary. By renouncing a player, a team gives up its right to use the Larry Bird, Early Bird, or Non-Bird exceptions (see question number 19) to re-sign that player. A renounced player no longer counts toward team salary, so teams use renouncement to gain additional cap room. After renouncing a player, the team is still permitted to re-sign that player, but must either have enough cap room to fit the salary, or sign the player using the Minimum Salary exception. The exception to this is an Early Bird free agent who is coming off the second season of his rookie scale contract. Such players, when renounced, are treated as Non-Bird free agents.
If the player does not sign with any team (his prior team or any other team) for the entire season, then his renouncement continues. In other words, the team is not permitted to renounce a player, let him lie idle for the year, then re-sign him the following summer using Bird rights. However, if the player re-signs with his prior team, then his renouncement is no longer in effect when his contract ends. For example, if a team renounces their Larry Bird rights to a player, then re-signs that player to a one-year contract using cap room, then the player is once again a Larry Bird free agent the following summer.
After renouncing a player, a team can still trade the player in a sign-and-trade agreement (see question number 79).
